Team C&J
Here’s some insight into the last week in wine. Catalonian winery Domaine l’Infernal, founded by Rhône winegrowers, has been sold to the Belondrade family from DO Rueda. The 18ha vineyard, located in Torroja, was on the market since the start of 2023, and the former owners cited health issues and a loss of motivation as reasons for selling. Meanwhile, Treasury Wine Estates (TWE) plans to acquire a premium winery in Marlborough, New Zealand, to expand its vineyard area to 750 hectares, complementing brands like “Matua” and “Squealing Pig.” Rising wine prices in the US are influenced by inflation, international economic concerns, extreme weather, supply chain disruptions, and the impact of climate change. The wine industry’s focus on attracting younger drinkers has overshadowed the older demographic, which is expanding significantly. Chile faces declining wine consumption, leading to vineyard abandonment, with lower-tier wine sales declining but higher-tier wines showing growth. The 2023 wine grape harvest in California has resulted in significant oversupply, posing challenges for growers and wineries amid flat wine sales.
Priorat’s Domaine l’Infernal sold to the Belondrade family
Catalonian winery Domaine l’Infernal, established by Rhône winegrowers, Laurent Combier, Peter Fischer, and Jean-Michel Gerin, has been sold to the Belondrade family of DO Rueda after being on the market since the start of 2023. The Belondrade family, known for their barrel-fermented Spanish whites, acquired the property, an 18-ha vineyard located in Torroja. The former owners express gratitude for 25 years of stewardship and shared passion for the estate, citing health issues and a loss of motivation as reasons for selling. They plan a farewell sales event for their last vintage of L’Infernal as they bid adieu to their Priorat winemaking venture.
TWE to Acquire Unnamed Winery and Land in New Zealand | Meininger’s International
Treasury Wine Estates (TWE) plans to acquire a premium winery in Marlborough, New Zealand, expanding its vineyard area to 750 hectares pending approval from authorities. The Australian wine giant aims to increase its presence in New Zealand, with the new acquisition yet to be named, complementing its brands such as “Matua” and “Squealing Pig.” Details regarding the winery’s name and investment amount will be disclosed post-acquisition completion, according to TWE’s response to inquiries. Kerrin Petty, TWE’s Chief Supply and Sustainability Officer, highlighted that this acquisition aligns with their strategy to enhance their premium wine portfolio and adapt to evolving consumer preferences, emphasizing the inclusion of a dedicated water reservoir in the acquired vineyard.
The major factors driving up the prices of US wine
Rising wine prices in the US stem from a blend of factors affecting the industry. An inflationary economy, international economic concerns, and extreme weather have all contributed to increased costs. Supply chain disruptions due to the pandemic have impacted packaging materials, raising expenses for winemakers, who are also contending with higher labor costs. During the pandemic, rising demand allowed some winemakers to offset costs by increasing prices, conditioning consumers to accept higher prices even as demand normalized. The three-tier distribution system, controlled largely by major wholesalers, further influences pricing and margins for wine producers. Climate change introduces unpredictability, disrupting traditional practices and impacting grape harvests, potentially reshaping the industry and consumer experiences with wine in the future. This is one more reason to look to international markets and the wines of Valle de Guadalupe or Italy or good value bottles.
Wine’s Demand and Demography Dilemma | Wine-Searcher News & Features
The wine industry’s fixation on attracting younger drinkers, particularly Millennials and Gen Z, has overshadowed a significant market: older consumers. With Baby Boomers transitioning out of wine consumption, the focus has shifted to engaging younger legal drinking age groups. However, statistics reveal a substantial and growing demographic of individuals over 55, a market that’s expanding exponentially compared to the collective under-55 population. Despite this, the industry’s persistent obsession with youth seems shortsighted, considering that consumers aged 60 and above already account for a significant portion of wine consumption, a trend expected to continue with an aging population. While engaging with younger drinkers is crucial, the vast potential of older demographics shouldn’t be ignored or underestimated, as they exhibit more consistent drinking habits, loyalty to specific brands, and possess considerable spending power. The industry’s strategy needs to pivot towards understanding and catering to the preferences of this aging yet affluent consumer base, potentially securing long-term brand loyalty and market stability.
Chile abandoning vineyards as sales decline – The Drinks Business
Chile faces declining wine consumption, leading to vineyard abandonment, mirroring global trends, according to Sebastian Labbé, winemaker for Viña Santa Rita. Diminished sales both domestically and internationally, notably in key markets like China, mounting wine stocks, and the need to sell the current vintage to make room for the upcoming harvest are all contributing to this predicament. Labbé predicts the potential removal of unused vineyards due to low demand, signaling tough times ahead. Despite the decline in entry-level wine sales, higher-tier wines priced above $500 per case show growth. He shares positive aspects of the latest harvest, emphasizing its quality despite challenging market conditions and lower demand for cheaper wines. Chilean wine exports, both bottled and bulk, have suffered significant declines, reflecting the broader struggle in the industry.
California Vintage a Bumper Crop | Wine-Searcher News & Features
The bountiful 2023 wine grape harvest in California has resulted in significant oversupply, leaving many grapes unharvested, especially in the San Joaquin Valley. Despite the surplus, this surplus may improve the quality of cheaper and mid-range wines from the 2023 vintage due to the availability of grapes from higher-quality regions than usual. However, this poses challenges for growers and California wineries as flat wine sales domestically and globally have led to downward price pressure. The unexpectedly large crop size was attributed to clusters left during pruning that grew significantly due to an extended cool summer. As a result, a portion of the crop, approximately 14%, was rejected by buyers or grown without contracts. While coastal fruit is facing price pressure, wines under $20 are expected to improve significantly in quality due to the surplus of high-quality grapes from coastal regions. This situation in California contrasts with the global trend, as the OIV estimates the 2023 global harvest to be the smallest in 60 years, benefiting the market due to decreasing worldwide consumption. However, this surplus in California aligns with struggling wine industries in Argentina, Australia, Italy, and Spain due to various challenges like trade issues and weather conditions. Additionally, despite potential economic challenges ahead, there’s an expectation of consumers shifting toward cheaper wines, possibly impacting the market until 2025, even as the quality of bulk wine from California’s 2023 harvest promises to be exceptional
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